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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is...

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Accounting

Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $85,600 and for Purchasing is $51,400. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders.
\table[[,,Purchase],[Department,Sales,Orders],[Books,$193,200,1,551],[Magazines,109,200,693],[Newspapers,117,600,1,056],[Total,$420,000,3,300]]
Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information.
\table[[Office,Allocation Base,Percent of Allocation Base,Cost to be Allocated Allocated Cost],[Department,,Numerator,Denominator,% of Total,,],[Books],[\table[[Magazines],[Newspapers]]],[\table[[Newspapers],[Totals]]],[Totals],[],[Purchasing,Allocation Base,Percent of Allocation Base,Cost to be Allocated,Allocated Cost],[Department,,\table[[Numerator]],Denominator,% of Total,,5],[Books],[Magazines],[Newspapers],[Totals,,,,,,]]
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